While JP Morgan CEO, Jamie Dimon’s recent tirade against Bitcoin was nothing new, he did notably praise blockchain technology and now we know why.
Today JP Morgan has announced a partnership with the Royal Bank of Canada and Australia and New Zealand Banking Group to launch a blockchain-powered network to facilitate global payments.
The Interbank Information Network (IIN), is a new initiative by JP Morgan, which will allow for faster payments and additional security, according to a press release issued by the bank.
“IIN will enhance the client experience, decreasing the amount of time – from weeks to hours – and costs associated with resolving payment delays. Blockchain capabilities have allowed us to rethink how critical information can be sourced and exchanged between global banks,”
said Emma Loftus, Head of Global Payments and FX at JP Morgan’s Treasury Services.
The bank acknowledged the current complications which hinder global payments and shared how blockchain technology can significantly reduce the inherent time delays by minimizing the number of involved parties and making processes like compliance and verifications much more efficient.
According to the press release, the Interbank Information Network (IIN) is powered by a variant of the Ethereum platform, called Quorum, which prioritizes privacy and security to ensure secure data transfer.
The press release also mentioned other participants joining the network in the near future, possibly extending its utility to other regions in the world:
“Royal Bank of Canada and Australia and New Zealand Banking Group Limited are the first two banks to join IIN, representing significant cross-border payment volumes. Other correspondent banks are expected to join in the coming months.”
JP Morgan is a leading investment bank which handles trillions of dollars in daily payments, something that was highlighted by the CEO, Jamie Dimon, when he criticized Bitcoin, and called buyers and traders of the cryptocurrency “stupid”.
Today, we also reported a partnership between IBM and Stellar, the startup behind the Lumens (XLM) cryptocurrency, as they work together to develop a blockchain-powered payment transfer platform for the South Pacific region.
While IBM’s platform will move actual cryptocurrency, JP Morgan’s IIN seems more focused on data transfer for faster, more secure payment processing.